Research Analysis: The Fantasy Sports Industry (Part V & VI)

V. Key Market Segments

By Sports Type

The fantasy sports market is segmented across various sports, with some dominating in terms of market share while others exhibit rapid growth.

Football/Soccer consistently accounts for the largest market share globally in 2024. Its dominance is underpinned by a massive global fan base and extensive league structures, including the English Premier League, La Liga, and FIFA tournaments. The sport's year-round calendar and high media coverage foster continuous engagement in fantasy leagues. In the U.S. and Canada, gridiron football is the most popular fantasy sport, played by approximately 79% of fantasy participants.   

Cricket is projected to experience the fastest compound annual growth rate (CAGR) from 2025 to 2030. This growth is primarily driven by its surging popularity in emerging markets, particularly India, Southeast Asia, and the Middle East. The widespread adoption of smartphones and affordable internet access in these regions, coupled with the rise of fast-paced Twenty20 (T20) leagues, has expanded the fan base significantly. Mobile-based fantasy platforms tailored to cricket's format are attracting new users, boosting market expansion.   

Other major sports contributing to the market include Basketball (32% U.S./Canada participation), Baseball (22%), Ice Hockey (12%), Association Football (Soccer) (11%), and College Football (11%). The "Other Types" category encompasses sports such as Golf, Tennis, eSports, Auto Racing, and Mixed Martial Arts (MMA). Notably, the  

Extreme Sports segment is expected to witness a rapid CAGR of over 15% from 2025 to 2030, fueled by growing global interest among younger, tech-savvy users.   

The market exhibits a dual strategy where established players maintain their stronghold in popular sports like football/soccer while strategically investing in rapidly growing niche or regionally dominant sports such as cricket and extreme sports. This approach allows companies to diversify their portfolios, mitigate risks associated with market saturation in mainstream sports, and tap into new demographics and regional preferences, ensuring sustained growth.

Table 3: Fantasy Sports Market Segmentation by Sports Type (2024 Market Share)

 

By Platform

 

The way users access fantasy sports platforms significantly influences market dynamics and development priorities.

Mobile Applications currently lead the market, holding approximately 55.0% of the market share in 2024 and are projected to maintain the largest share throughout the forecast period. This dominance is primarily driven by the widespread adoption of smartphones, improved mobile internet connectivity, and the inherent convenience of mobile apps, which allow users to participate in fantasy sports anytime and anywhere. Mobile apps also typically offer superior performance, being about 1.5 times faster than their web-based counterparts.   

 

Website (Web-Based Platforms) continue to hold a significant share, particularly in the Daily Fantasy Sports (DFS) market, where they accounted for over 60% of revenue in 2023. This segment is expected to experience a notable CAGR from 2025 to 2030, driven by its accessibility across multiple devices without requiring downloads, its cross-platform compatibility, and its integration with social media, all of which enhance user interaction and sharing.   

Console/PC Games also contribute to the market, with this segment expected to reach a value of over USD 10 billion by 2032. The rising popularity of esports and competitive gaming has significantly contributed to the growth of this segment.   

While mobile applications clearly dominate in terms of market share and projected growth due to their convenience, web-based platforms retain a large user base and are still expanding. This market structure necessitates a "mobile-first" approach for design and development, optimizing for on-the-go engagement. However, neglecting web-based platforms would be a strategic misstep, as they cater to users who prefer desktop experiences or require cross-platform accessibility. The prevailing trend suggests that a comprehensive strategy demands seamless cross-platform experiences, allowing users to transition effortlessly between devices, thereby maximizing overall engagement and market reach.

Table 4: Fantasy Sports Market Segmentation by Platform (2024 Market Share)

 

By Usage Type

Fantasy sports platforms offer various usage types, including free, paid, and hybrid models. The paid model, particularly prevalent in Daily Fantasy Sports (DFS), serves as a primary revenue source, where user entry fees contribute to prize pools. Many leading applications effectively employ a freemium model, which combines free basic access with paid premium features. This approach is crucial for user acquisition, as it lowers the barrier to entry and allows potential users to experience the platform without an immediate financial commitment. Once users are engaged and familiar with the platform, they can be upsold to premium features, such as advanced analytics, ad-free experiences, or participation in paid contests, thereby converting initial engagement into direct revenue. This hybrid model successfully balances accessibility with profitability, which is vital for scaling user bases in a competitive market.   

By Application/Competition Type

Fantasy sports competitions are broadly categorized into individual and team-based applications.

Team Competition currently holds the largest market share in 2024. This dominance is largely driven by the inherent social and interactive aspects of team-based fantasy contests, which naturally promote collaboration and rivalry among friends, family, and broader communities. The ability to engage in friendly banter, share strategies, and compete within a social circle significantly enhances user enjoyment and long-term retention.   

Conversely, Individual Competition is projected to witness the fastest compound annual growth rate (CAGR) from 2025 to 2030. This acceleration is fueled by an increasing demand for personalized, skill-based contests. The integration of advanced technologies, particularly Artificial Intelligence (AI) and machine learning, plays a pivotal role here. These technologies enable real-time player performance tracking and the creation of highly customized game formats, which appeal strongly to users who prefer solo challenges and a more refined, data-driven approach to gameplay. This trend signifies an evolving user preference, moving beyond purely social interaction to a desire for more sophisticated, analytical, and individually skill-testing experiences. Companies are increasingly investing in AI-powered analytics and customization features to cater to this segment, offering tools that enhance individual strategic play and provide a distinct competitive edge. This also opens new avenues for game formats that emphasize individual player knowledge and predictive capabilities.  

By Demographics

Understanding the demographic profile of fantasy sports players is crucial for targeted marketing and product development.

Age Distribution: The 25 to 40 years segment is a dominant force in the market, holding approximately 29.8% of the market share in 2024 and expected to maintain the largest share during the forecast period. This demographic is characterized by its tech-savviness, higher disposable income, and a strong passion for sports. The average age of a fantasy player is reported to be 34.4 years. Additionally, the 18-34 age group constituted 48% of players in 2023 , while the under-25 years segment held the largest market share in 2024, driven by their affinity for mobile gaming and social media integration.  

Gender Distribution: The player base is predominantly male, accounting for 64% in 2023 and 60% in 2019, with females representing 35% in 2023.  

Education and Income: A high percentage of fantasy sports players are well-educated, with 84% holding a college degree or higher in 2023 (compared to 79% in 2019). Economically, 65% of players report an income exceeding $50,000 , indicating a demographic with significant disposable income available for entertainment and paid contests.  

Other Behavioral Patterns: Beyond core demographics, fantasy players exhibit distinct consumer behaviors. They are generally stronger consumers of alcoholic beverages, fast food, airline travel, video games, sports periodicals, athletic shoes, and cell phones relative to the general population. They are also more likely to use social media platforms like Instagram and Snapchat, visit sports bars, and opt for food delivery services. A notable trend is the increasing overlap with sports betting; 81% of fantasy sports players engaged in sports betting in 2022.  

The demographic data consistently points to a core user base that is affluent, highly educated, and deeply engaged with both sports and digital platforms. This profile is exceptionally attractive for advertisers and potential partners. Marketing strategies should therefore concentrate on digital channels, social media, and content that appeals to a sophisticated, data-aware audience. Monetization strategies can effectively leverage premium features, paid contests, and partnerships with brands that target this financially capable consumer group. Furthermore, the strong correlation with sports betting indicates a significant potential for cross-platform integration and revenue synergy.

Table 5: Fantasy Sports Player Demographics (US & Canada, 2022/2023)

 

VI. Growth Drivers and Emerging Trends

The fantasy sports industry's impressive growth trajectory is propelled by a combination of foundational market conditions and cutting-edge technological innovations.

Increasing Internet and Smartphone Penetration

The widespread availability of high-speed internet and the ubiquitous adoption of smartphones have fundamentally transformed the fantasy sports landscape. These technological advancements have significantly expanded the global user base, making fantasy sports platforms more accessible to millions of enthusiasts worldwide. Mobile applications, in particular, have emerged as the primary gateway for participation, driving substantial market growth and innovation due to the unparalleled convenience they offer for on-the-go engagement. The ability to manage teams, track live scores, and interact with other players from virtually anywhere has become a core expectation, fueling continuous demand for mobile-first solutions.   

Rising Popularity of Major Sports Leagues and Sports Awareness

The increasing popularity and viewership of major sports leagues globally, such as the NFL, NBA, MLB, NHL, Indian Premier League (IPL), and English Premier League, are significant drivers of fantasy sports market growth. As these leagues attract millions of followers, fantasy sports platforms capitalize on this fervor by offering fans a more interactive and personalized way to engage with their favorite sports and athletes. This is further amplified by increased demographic participation, especially among the youth, who spend more time on smartphones and social media. Fantasy sports provide these younger demographics with an engaging avenue to connect and compete with their peers, thereby propelling overall market expansion.   

Technological AdvancementsTechnology is not merely an enabler but a core differentiator and a primary engine of innovation and competitive advantage in the fantasy sports market. Companies that fail to integrate cutting-edge technologies risk falling behind. The future of monetization and user retention will increasingly depend on offering highly personalized, immersive, and transparent experiences powered by these advancements.

• AI/Machine Learning (ML): Artificial intelligence and machine learning are revolutionizing the industry by providing AI-driven recommendations, personalized content, and predictive analytics for player performance and injury risks. These tools can automate lineup optimization, enhance fan engagement through chatbots and tailored content, and provide strategic insights for users. AI also plays a crucial role in fraud detection and ensuring fair play by analyzing user patterns and behaviors. This deep integration of AI enhances strategic planning and overall user experience, providing a competitive edge.   

• Augmented Reality (AR) & Virtual Reality (VR): These immersive technologies are transforming how users interact with fantasy sports. AR and VR offer experiences that allow users to envision themselves on the pitch, interact with real-time game data through AR dashboards, or participate in virtual draft rooms. AR in broadcasting enhances coverage with computer-generated overlays, interactive replays, and live stats, making sports viewing more engaging and informative. The integration of these technologies elevates the fan experience beyond traditional viewing, creating a more interactive and dynamic environment.   

• Blockchain & Web3 (NFTs, Fan Tokens): Blockchain technology is introducing decentralization, transparency, and secure transactions to fantasy sports. This technology eliminates fraud and manipulation by recording all transactions and game data on an immutable ledger, ensuring fairness and trust through smart contracts that automate rule enforcement and payouts. Non-Fungible Tokens (NFTs) enable users to own digital representations of real-world athletes as tradeable assets, creating new revenue opportunities through verifiable ownership and play-to-earn models. Furthermore, fan tokens, a component of Web3, offer exclusive experiences and voting rights, deepening community engagement and loyalty. The integration of these technologies is fostering decentralized ownership and community governance, fundamentally reshaping how fans engage with their favorite sports and creating new economic value within the ecosystem. The competitive battleground will increasingly be defined by who can offer the most cutting-edge and seamless experiential innovation.   

Enhanced User Engagement Features and Gamification

Beyond core gameplay, fantasy sports platforms leverage advanced features and gamification to maintain high user engagement and retention. Real-time player performance tracking, personalized push notifications, gamified leaderboards, badges, and daily streak challenges are crucial in keeping users invested and increasing daily app usage. Real-time tracking transforms passive browsing into a thrilling experience, with users constantly checking scores and anticipating outcomes. Personalized alerts, tailored to user preferences, significantly increase interaction rates. Gamification elements, such as weekly rankings, badges for milestones, and bonus points, provide players with continuous goals, keeping them hooked even when their team's performance fluctuates.   

Social Connectivity and Community Building

The social nature of fantasy sports is a powerful driver of long-term retention. These platforms inherently foster social interaction and competition among peers, friends, and coworkers. In-app social features, including private leagues, chat functionality, strategy forums, and easy team sharing, significantly boost long-term retention and in-app activity. Users spend more time in the app and return frequently when they feel part of a vibrant community or "tribe". This emotional connection transforms casual players into loyal, long-term regulars.   

Legalization and Regulatory Advancements

The evolving legal landscape, particularly the legalization and expansion of sports betting in many jurisdictions, has significantly influenced the fantasy sports market. In North America, the rapid expansion of sports betting across multiple states has intensified demand for fantasy sports by integrating elements that appeal to bettors. Regulatory clarity, especially where Daily Fantasy Sports (DFS) is recognized as a game of skill rather than chance, enhances market credibility and attracts major investors and sports associations.   

However, this integration presents a dual dynamic. While it offers significant revenue growth and user engagement opportunities, it also brings heightened scrutiny regarding responsible gaming, player protection, and the potential for being perceived as gambling rather than a game of skill. The industry must balance aggressive market expansion with robust responsible gaming frameworks and proactive engagement with regulators to mitigate these risks and ensure long-term sustainability.   

Diversification into New Sports and Niche Leagues

To capture a broader audience and mitigate market saturation risks, companies are actively diversifying their offerings. This includes expanding into new sports such as esports, Mixed Martial Arts (MMA), and cricket, as well as developing daily fantasy formats for these emerging categories. The rise of micro-transactions, multi-sport support, and the inclusion of niche leagues further expand the user base by catering to diverse interests and preferences. This strategic diversification allows platforms to tap into new demographics and regional markets, ensuring sustained growth beyond the traditional mainstream sports.   

Increasing Disposable Incomes and Youth Participation

Rising disposable incomes, particularly among the core demographic of 25-40 year olds, contribute significantly to sustained participation and a willingness to engage in paid contests. This demographic's financial capacity allows for greater spending on entertainment, including fantasy sports. Concurrently, the increasing global youth population (1.2 billion aged 15-24, projected to grow) plays a crucial role in market expansion. This demographic's heavy reliance on smartphones and social media naturally aligns with fantasy sports platforms, fostering connections and competitions among peers and driving significant growth.